2017 (9) TMI 1296

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..../- made by it on account of Interest on loan to AEs at London Inter Bank Offer Rate (LIBOR) Plus 2% Rate = 5.81% which is almost equal to the Prime Lending Rate or American Bank lending rate. (II) Whether on the facts and circumstances of the case and in law, the ITAT was justified in setting aside the findings of the CIT(A) and directing the AO to delete the entire transfer pricing adjustment of Rs. 21,08,42,301/- made by it on account of Interest on 0% OFCDs at London Inter Bank Offer Rate (LIBOR) Plus 2% Rate = 5.88% without appreciating that the A.O. had computed arm's length price in accordance with the provision of section 92C of the Act? (III) Whether on the facts and circumstances of the case and in law, the ITAT w....

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....upreme Court given in the case of Ajanta Pharma reported in [2010] 327 ITR 305? 3. So far as the first question is concerned, we notice that the issue is covered by the judgement of Full Bench in case of Commissioner of Income Tax vs. Vodafone Essar Gujarat Ltd. rendered in Tax Appeal No. 749 of 2012 dated 04.08.2017 in which it was opined as under: "23. By way of culmination of above judicial pronouncements and statutory provisions, the situation that arises is that prior to the introduction of clause(i) to the explanation to section 115JB, as held by the Supreme Court in case of HCL Comnet Systems and Services Ltd. (supra), the then existing clause (c) did not cover a case where the assessee made a provision for bad or doubtfu....

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.... Loss. Section 10B of the Act was a special provision in respect of newly established 100% export oriented undertakings. As per sub-section (4) of section 10B for the purpose of sub-section (1) the profits derived from the export of articles or things or computer software would be the amounts which bear to the profits of the business of the undertaking, the same proportion as the export turnover in respect of such articles or things or computer software bears to the total turnover of the business carried on by the undertaking. In context of such provisions, the question before the Tribunal arose whether for the computation of book profits under section 115JB of the Act, the entire profit of the eligible business under section 10B of the Act....